Mid Cap NBFC, Pharma Stocks Showing Potential To Rally, Buy For Higher Return: Motilal Oswal

Motilal Oswal has recommended investors to buy two mid-cap stocks showing potential to soar. These two stocks belong to pharmaceuticals and NBFC sector. The stocks are Ajanta Pharma and 360 ONE WAM. If you buy these stocks now, you can get likley return of 24%. Check details below:

Buy Ajanta Pharma: Motilal Oswal has suggested investors to buy Ajanta Pharma with a target price of Rs 1410 apiece. Last trading price of Ajanta Pharma is Rs 1215.65 apiece. If you buy Ajanta Pharma at the last trading price, you can get a return of 16%.

The stock's 52-week high is quoted at Rs 1425.80 apiece and 52-week low is quoted at Rs 1062.73 apiece, respectively. Its market capitalisation is Rs 15,575.53 crore.

The stock delivered 4% return in last 1-year and 30% return in last 3-years, and 38% in last 5-years.

According to Motilal Oswal, "AJP has enhanced its efforts to improve profitability over the next 2-3 years. Superior execution in the branded generics segment across domestic formulation (DF), Asia and Africa would result in industry outperformance. We continue to value AJP at 22x 12M forward earnings to arrive at our TP of INR1,410. Maintain BUY."

Buy 360 ONE WAM: The analyst is upbeat on 360ONE WAM share and recommended investors to buy it with a target price of Rs 550 apiece. Last trading price of 360 ONE WAM is Rs 443.00 apiece. If you buy 360 ONE WAM shares now, you can fetch potential upside of 24%.

360 ONE WAM's 52-week high is Rs 507.41 apiece and 52-week low is Rs 306.43 apiece, respectively. The mid cap NBFC sector stock's market capitalisation is Rs 15,774.00. The stock gave a return of 17% in last 1-year and 26% in last 3-years.

According to Motilal Oswal, "With a healthy dividend payout of 70%+ and RoE of 25% by FY24, we find valuations reasonable at P/E of 17.7x FY25E EPS. Maintain BUY with a 1-year price target of INR550 (adjusted for bonus and split) at 22x FY25E EPS."

Disclaimer: The stocks have been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.